Best Practice Toolkit Evaluation matrix user guide BPI Best Procurement Implementation

2 Contents Engage the Commodity Team Components of the evaluation matrix Weights Sub-Weights Evaluating the ability to supply a national contract Evaluating the total cost of supply Scoring and benchmarking the suppliers The evaluation matrix as a worksheet in excel

3 Engage the Commodity Team The evaluation criteria was agreed at a meeting with all Commodity Team Introduce the decision matrix concept

4 The components in the evaluation Matrix 7 KEY components in the evaluation matrix After-Sales Delivery Costing Structure Quality Commercial

5 Components of the evaluation matrix defined Quality After-sales Costing Structure Delivery Commercial Ability to supply a national contract Price Total Quality Management System. This includes past performance data on achieving an ave of 85% one day replacement turnaround/ complaints/ replacement and rejected goods process, certification and customer quality awards. The complete service offering. This includes dedicated staff/customer satisfaction/perf mgt and uptake reporting/process improvements and cost reductions /Core & non-core list. Ability to assess the suppliers total cost model. This includes open book costing and price fixing. On time delivery and flexibility. This includes turnaround times/ the suppliers ability to meet unscheduled requests/past performance data on achieving 85% or more on-time deliveries and delivery point improvements. Commercial viability. This includes the effectiveness of the implementation plans/board level support network/ financial stability and the level of the organisation’s influence over the supplier (For example, negotiating power). The ability of the supplier to supply to all delivery points in the preferred delivery option. The total price tendered including all discounts and additional costs. PERFORMANCEPERFORMANCE

6 How the evaluation matrix uses weighting All calculations in the evaluation matrix have been automated. The next stage is to find the weight for each component in the evaluation matrix The sub-weights will be included in the score for each performance criteria. Sub-weights will be applied to each tender question and summed into a total %

7 Each Team contributes to finding the weight Commodity Team asked to answer ‘Yes’ or ‘No’ on what criteria is more important than another In the decision matrix: ‘Yes’ replaced by 1, ‘No’ replaced by -1 Specific questions have been designed to derive the opinion of each Team member concerning the level of importance for each criteria

8 Calculate the weight from the Commodity Team responses Total for each criteria Enter the Team responses as a 1 or -1 into the decision matrix which will automatically calculate the total/Rank/Weight/Weight % = Weight for each criteria Sum of all the negative numbers in the total column - DRAFT EVALUATION CRITERIA - DRAFT STEP 1 STEP 2STEP 3

9 Each Commodity Team member contributes to finding the sub-weights Each Team member rates each topic between 1 – 3, (3 is critically important, 2 is important and 1 is nice to have) f x = (AVERAGE) ●Find the average of all Team member responses = Sub-weight for each tender question (the importance of each tender question) STEP 1 STEP 2 STEP 3

10 Each sub-weight will place a level of importance against each tender question Tender Yes = 1 No = 0 x Sub – Weight = Step 1 Step 2 Step 3 Score for Each tender que Que

11 Calculate the total score for each criteria All steps are automatic. Sum the total score STEP 1 STEP 2 STEP 3 Calculate as a percentage Enter the criteria specific percentage into the evaluation matrix }

12 Calculation of weights and sub-weights have been automated WEIGHT SUB-WEIGHT Just type ‘Yes’ or No’ respectively for each participating organisation in the yellow shaded boxes Just type the exact rating that each Commodity Team Member has advised in the yellow shaded boxes 3 spreadsheets will automatically calculate the weight and sub-weight data &

13 Measuring the ability to supply a national contract All calculations in the evaluation matrix have been automated. \ Step 1 Step 2 Step 3 Suppliers answer ‘Yes’ or ‘No’ on their ability to deliver to each delivery point Yes =1 No =0 The spreadsheet will calculate the total score: Total Score Max Score = Sliding Rating The sliding rating system awards each supplier a score relative to their ability to meet the delivery requirements. X 100 National Delivery Points OrganisationAOrganisationBOrganisationCOrganisationDOrganisationE Score for all commodities Total for all Geographies Maximum Score Score for all Geographies All delivery points yes noNO All delivery options YES Stationary yesNO Computer Consumables yesNOYES NO Small Electronic Office Equipment YES Total %

14 Measuring the total cost of supply The sliding rating system awards each supplier a score relative to the lowest cost. The lower the cost, the higher the score. \ Step 1 Step 2 Step 3 Enter the total cost (including all discounts/charges) for the each turnaround time Enter the total amount of the lowest cost supplier The spreadsheet will calculate the % scoring: Lowest Cost Supplier Cost = Sliding Rating Sum and find % total score for each supplier Step 4 X 100

15 Score and benchmark each supplier All calculations in the evaluation matrix have been automated. The total score is the sum of all the 7 evaluation components Benchmark the tender score by ranking each supplier